Welcome back steemit coin traders,yesterday saw bitcoin making a new high of $3491 (Fibonacci extension level), some profit taking, couple with the bulls soft pedaling ,dropping the bullish acceleration saw price drop to a current low of $3250.
A break above $3491 price level could lead to a rally up to the full extension at $3900.Although if the current resistance holds, the price could make a pullback to the area of interest at $2800-3000.
BITCOIN RESISITANCE/SUPPORT LEVELS TO WATCH OUT
R3 – 3623.1
R2 – 3553.0
R1 – 3484.0
PP – 3413.9
S1 – 3344.9
S2 – 3274.8
S3 – 3205.8
MOVING AVERAGE
The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. In addition, the gap between the two moving averages is widening to reflect stronger buying momentum.
STOCHASTIC/RSI
However, stochastic on the daily time frame is already indicating overbought conditions so profit-taking could be due. RSI also looks ready to head south, which signals that buyers need to take a break and let sellers take over from here.
Nearby support is at the $2800-3000 area which held as resistance in the past. A break below this area, though, could give room for a larger dip to the next support closer to $1800-2000
GEO-POLITICAL FACTORS
Geopolitical risk is back in the spotlight since North Korea has threatened to launch a missile strike on the nearby U.S. Pacific territory of Guam. Trump has mentioned that this will be met with “fire and fury”,If tension between the US and North Korea persist could also see a massive dumping of the us dollar,thus fuelling another bitcoin rally in price.
Then again, the dollar remains supported against most of its peers since it does serve as a safe-haven after all. Besides, medium-tier reports are hinting at a strong pickup in hiring and spending in the coming months, supporting the idea of a Fed rate hike in September
ETHEREUM PRICE ANALYSIS
ETH price continued to gain momentum and was able to move above the $290 resistance against the US Dollar hitting a daily a high of $315.78,current price is $295.66.Bullish trend line support forming at $301 and $285 on the hourly chart of ETH/USD.My favorable approach remains buying on dips near $300-285 ,with likely potential to extend gains in the near term.
Yesterdays close above $290 and previous $260 resistance was an ample proof of future gains for the pair It has cleared the path for more gains. Today, the price even cleared the $300 handle and traded as high as $315.78 where it faced strong offers. A correction wave is about to start towards $300 or lower, but the price remains supported in the near term.
An initial support on the downside is around the 23.6% Fib retracement level of the last wave from the $264.10 low to $313.18 high. There are also two bullish trend lines forming with supports as $301 and $285 on the hourly chart of ETH/USD.
The first trend line is a short-term support at $300. However, the most important support is near $285. It also coincides with the 50% Fib retracement level of the last wave from the $264.10 low to $313.18 high.
RESISTANCE/SUPPORT LEVELS
Major Resistance Level – $315
Major Support Level – $285
LITECOIN
LITECOIN/EURO (LTCEUR)
Interested in buying litecoin/Euro,probably this trading idea will be ideal for you. The market moves upward in the borders of the ascending price channel . We had a good entry level based on a reversal signal in the support zone . This zone was formed by the trend line and 35.00 support level . It was the first opportunity to buy Litecoin. Now we have a new entry level but this time we should trade based on a breakout signal. If the market breaks 40.00 resistance level , we'll have an additional confirmation for further upward movement. Pending orders for buy should be placed at 40.10 level. Stop orders must be below the swing low and it's 31.90 level. Profit target should be at 48.50 resistance level.
Thanks for your attention,your contribution in terms of expert market analysis will be appreciated.If you missed yesterdays trade analysis here is the link - https://steemit.com/bitcoin/@detycoon/crypto-update-bitcoin-cracks-usd3400-ethereum-litecoin-all-in-bullish-overdrive
